You have been chosen to consult for your local girl scout troop with regards to cookie sales Current
You have been chosen to consult for your local girl scout troop with regards to cookie sales Currently cookies sell for $8 a box (let’s assume they are all the same price) and cost $2 per box to produce The price-deman function looks as follows: Demand per customer = 35 – 25*Price
The $8 price is the profit optimizing price for the current sales model of $8 per box Determine the following:
What is the profit per customer currently?
What would the profit per customer be if you introduced a two part tariff, where by you charge a fixed cost to the customer to place an order and then a separate price per box?